The Superior Court says that law, which permits legal action to be taken against any Fund advisor, is constitutional and further, that even though nearly every investment advisor, money manager, actuarial advisor, attorneys and certified public accountant have terminated their contracts or are terminating them, there is “no impact on the Fund” because it can always hire new ones.
Except that no one wants to be hired, and apparently there is no insurance policy that can be purchased to protect these firms against liability. Firms qualified to handle investments in excess of $200 million are very risk adverse and will not agree to work in a jurisdiction that doesn’t comprehend the fundamentals of commerce.
So now pension funds will be invested in mutual funds which are better than savings rates but will still be monitored by this Retirement Fund board with legislative oversight — which should provide as much comfort as a wet blanket.
The path to growth
HAVING fulfilled their one big task — the passage of a new budget, never mind if it’s balanced or not — lawmakers are resting from the rigors of that effort and turning their attention to other topics, including Article XII. Some are now attempting to fashion any device that will maintain this economic prophylactic in place by, for example, dropping the quantum blood quotient to infinitesimal amounts in recognition of the ethnic diversity that exists in the CNMI. But this begs the question of the value of such a measure.
These kinds of restrictions hinder growth and hurt the very people they were designed to “protect.” The best path to growth and security is a good education and a level playing field for everyone.
Make it right
BLUE Water Homes withdrew its application to build new units, saying it was exploring other sites. While the concept may suit the CNMI and provide much needed development, it must still be done in accordance with the usual permitting requirements and considerations like traffic and pedestrian studies, water and wastewater impact studies, a proper view corridor so that a monolithic structure doesn’t block an entire ocean vista, adequate parking and proper drainage that won’t compound problems posed by the poor drainage that already exists.
The CNMI is down and out but it doesn’t mean that new construction activities shouldn’t meet basic standards. These ensure the corporation a good place in the community and add to the island’s attractiveness over the long haul.
